Global debt-to-GDP ratio hits a record high of 331% in Q1 2020

With $11 trillion in global fiscal stimulus approved and another $5 trillion in the pipeline, it’s all set to rise even further

Pandemic driven stimuli by central banks & governments around the world have added trillions of dollars of debt to their balance sheets. As the effects of initial fiscal & monetary measures taken, begin to fade away and investors became wary of a robust recovery as virus cases spike around the World, financial authorities are back on the table debating further stimulus.

While handing more money might not be a permanent solution, it has certainly helped in sustaining the global financial system, which has been jolted by the severe shock in the form of the current pandemic. It has increasingly become evident that any sustained recovery would eventually be tied to the development of a vaccine. The

U.S & EU are already debating another round of stimulus packages. The downside to all this money transfer is that eventually, consumers have to pay back the big bills that governments are running right now — ballooning their balance sheets to record levels. A recent report by the Institute of International Finance (IIF)highlights these facts.